UltraTech Cement Limited (IN:ULTRACEMCO)
:ULTRACEMCO
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UltraTech Cement Limited
(ULTRACEMCO)
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Rating:76Outperform
Price Target:
₹12,375.00
▲(4.03% Upside)
Action:UpgradedDate:01/26/26
Score is driven primarily by strong financial performance (growth, profitability and operating cash generation) and a supportive technical trend. The biggest offset is expensive valuation (high P/E and low yield), while earnings-call commentary is net positive but acknowledges near-term pricing and cost risks.
Positive Factors
Revenue and margin strength
UltraTech has delivered durable top-line growth and resilient EBIT/EBITDA margins, supported by volume gains and operating leverage. Steady revenue expansion and margin resilience indicate sustainable core profitability and pricing power that underpin cash generation and reinvestment capacity over the medium term.
Negative Factors
Rising leverage and large capex run-rate
Debt has risen alongside an elevated FY26 capex program (~INR 9,500–10,000 crore), which compresses free cash flow and raises refinancing and covenant risk if operating conditions weaken. Higher leverage limits flexibility for opportunistic investments and increases sensitivity to cyclical downturns over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin strength
UltraTech has delivered durable top-line growth and resilient EBIT/EBITDA margins, supported by volume gains and operating leverage. Steady revenue expansion and margin resilience indicate sustainable core profitability and pricing power that underpin cash generation and reinvestment capacity over the medium term.
Read all positive factors
UltraTech Cement Limited (ULTRACEMCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.41T
Dividend Yield0.66%
Average Volume (3M)5.04K
Price to Earnings (P/E)50.2
Beta (1Y)1.30
Revenue Growth14.50%
EPS Growth11.26%
CountryIN
Employees23,670
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)58.62
Shares Outstanding294,679,170
10 Day Avg. Volume2,991
30 Day Avg. Volume5,042
Financial Highlights & Ratios
PEG Ratio-3.53
Price to Book (P/B)4.69
Price to Sales (P/S)4.36
P/FCF Ratio214.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹14,166.67Price Target Upside19.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)359.96
Revenue Forecast (FY)₹984.96B
UltraTech Cement Limited Business Overview & Revenue Model
Company Description
UltraTech Cement Limited, together with its subsidiaries, manufactures and sells cement and cement related products in India. It offers ordinary Portland cement, Portland blast furnace slag cement, Portland Pozzolana cement, white cement, and whit...
How the Company Makes Money
UltraTech Cement makes money mainly by manufacturing and selling building materials, with revenue driven primarily by volumes sold and realized selling prices, net of discounts and logistics terms. Key revenue streams include: (1) Cement sales: Th...
UltraTech Cement Limited Earnings Call Summary
Earnings Call Date:Jan 24, 2026
(Q3-2026)
| Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook driven by strong Q3 volumes and margin outperformance, a healthy and diversified infrastructure-driven demand pipeline across India, meaningful operational efficiency gains (lead distance, clinker ratio), active capacity expansion funded via internal accruals, and ongoing integration of acquisitions. Key risks highlighted include earlier quarter price softness, input-cost inflation (pet coke/coal and labor), near-term industry capacity additions that could pressure pricing, and some asset/legal uncertainties related to India Cements. On balance the positive operational and demand developments outweigh the headwinds.Positive Updates
Robust Volume and Margin Outperformance
Management and analysts repeatedly noted a 'great set of numbers' with volumes and EBITDA margin beating expectations in Q3 FY26. Company indicated it will do 'much better' in Q4 versus Q3, and cited operating leverage and tight cost management as drivers of higher EBITDA per tonne going forward.
Negative Updates
Earlier Price Softness and Channel Volatility
Cement prices remained subdued earlier (post-GST change) with softening observed in late Sep–Nov. Company reported ~3% sequential price decline in Q3 and noted on-trade prices softened more sharply than non-trade in that quarter, indicating channel-level volatility.
Read all updates
Q3-2026 Updates
Positive
Negative
Robust Volume and Margin Outperformance
Management and analysts repeatedly noted a 'great set of numbers' with volumes and EBITDA margin beating expectations in Q3 FY26. Company indicated it will do 'much better' in Q4 versus Q3, and cited operating leverage and tight cost management as drivers of higher EBITDA per tonne going forward.
Read all positive updates
Company Guidance
UltraTech reiterated aggressive near‑term expansion and balance‑sheet improvement: consolidated net debt/EBITDA was 1.08x at quarter end with a target to reach ~1.0x and then 0.8–0.9x by year‑end; FY26 capex is ~INR 9,500–10,000 crore (c. INR 7,200 crore spent in 9M) and capacity additions of ~8–9 Mt in the current quarter, ~12 Mt in FY27 and the balance in FY28 (two clinker lines ~7 Mt added); operational gains include lead distance down to 363 km, clinker:cment ratio improved to 1.49 (vs target ~1.54), renewable energy ~41% (aiming ~60%), expected efficiency savings >INR100/ton this year (vs INR86/ton last year) on the way to a longer‑term INR300–350/ton target, and management expects to operate at >90% of installed capacity in Jan–Mar; other metrics called out were petcoke ~$117–119/ton, fuel cost ~INR1.8/kcal, premium product share ~36%, India Cements EBITDA/t ~INR400 today (INR1,000/t exit target by Q4 FY27), Kesoram brand conversion ~69% (c.70%) and India Cements ~58%, cable & wires orders ~INR500 crore (INR197 crore spent, launch Oct–Dec 2026), and planned non‑core monetizations of ~INR500 crore (c. INR200–250 crore realized) while funding growth from internal accruals.UltraTech Cement Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 831.33B | 759.55B | 709.08B | 632.40B | 525.99B | 447.26B |
| Gross Profit | 462.54B | 438.32B | 407.22B | 350.34B | 324.97B | 293.09B |
| EBITDA | 144.86B | 123.86B | 127.77B | 104.45B | 114.28B | 114.26B |
| Net Income | 69.80B | 60.39B | 70.05B | 50.64B | 73.44B | 54.63B |
Balance Sheet | ||||||
| Total Assets | 1.37T | 1.34T | 1.01T | 913.87B | 838.28B | 861.84B |
| Cash, Cash Equivalents and Short-Term Investments | 36.81B | 58.31B | 64.03B | 84.20B | 56.21B | 131.75B |
| Total Debt | 252.15B | 241.02B | 114.03B | 110.58B | 112.99B | 217.19B |
| Total Liabilities | 613.38B | 598.04B | 405.19B | 371.18B | 333.96B | 420.03B |
| Stockholders Equity | 720.33B | 707.07B | 602.27B | 543.25B | 504.35B | 441.75B |
Cash Flow | ||||||
| Free Cash Flow | 7.71B | 15.44B | 18.92B | 28.68B | 36.70B | 105.78B |
| Operating Cash Flow | 55.67B | 106.73B | 108.98B | 90.69B | 92.83B | 125.03B |
| Investing Cash Flow | -33.03B | -165.04B | -87.88B | -71.87B | 22.57B | -88.59B |
| Financing Cash Flow | -26.21B | 50.76B | -19.26B | -16.31B | -124.98B | -43.56B |
UltraTech Cement Limited Technical Analysis
Negative
11895.45
Price Trends
12010.36
Negative
11908.15
Negative
12087.59
Negative
Market Momentum
-176.39
Negative
53.33
Neutral
83.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ULTRACEMCO, the sentiment is Negative. The current price of 11895.45 is above the 20-day moving average (MA) of 11016.42, below the 50-day MA of 12010.36, and below the 200-day MA of 12087.59, indicating a neutral trend. The MACD of -176.39 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 83.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ULTRACEMCO.
UltraTech Cement Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹3.41T | 50.22 | ― | 0.66% | 14.50% | 11.26% | |
64 Neutral | ₹267.50B | 20.19 | ― | 0.43% | 15.13% | 63.32% | |
62 Neutral | ₹234.43B | 16.20 | ― | 0.19% | -2.61% | 34.66% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ₹1.10T | 168.78 | ― | 0.37% | 14.92% | 63.27% | |
57 Neutral | ₹878.10B | 89.88 | ― | 0.73% | 1.58% | -0.75% | |
55 Neutral | ₹111.36B | 64.48 | ― | ― | 5.09% | 458.10% |
* Basic Materials Sector Average
IN:ULTRACEMCO
UltraTech Cement Limited
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UltraTech Cement Limited Corporate Events
UltraTech Cement Publishes Q3 and Nine-Month FY2025 Results in Leading Dailies
Jan 26, 2026
UltraTech Cement Limited has announced that it has published the newspaper advertisements of its financial results for the quarter and nine months ended 31 December 2025, in compliance with Indian securities listing regulations. The results have b...
UltraTech Cement Posts Earnings Call Audio for December Quarter Results
Jan 24, 2026
UltraTech Cement Limited has announced that the audio recording of its earnings call discussing the financial results for the quarter ended 31 December 2025 is now available on the company’s investor relations website. By making this recordi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.